Registration and other bans or restrictions imposed in other jurisdictions of Canada for violations of securities legislation now take effect automatically in New Brunswick, the Financial and Consumer Services Commission (FCNB) announced on Thursday.
New Brunswick is the latest province to introduce reciprocal measures, which means that enforcement sanctions, such as cease trade orders and registration bans, that are imposed in other provinces will also automatically apply in New Brunswick.
“When other securities regulators in Canada issue a decision or enter into an agreement with a person imposing sanctions, conditions, restrictions or requirements, these actions now automatically apply in New Brunswick as if the decision were made here,” says Kevin Hoyt, executive director of securities with the FCNB.
Last year, Alberta became the first province to adopt this approach to bolstering enforcement. Quebec and Nova Scotia followed suit earlier this year.
Previously, to reciprocate sanctions imposed by another regulator, the FCNB would have to issue its own decision, which consumed regulatory time and resources, and “did not provide efficient investor protection.”
Now, not only will sanctions imposed in other jurisdictions automatically be adopted in New Brunswick, but changes to, or the revoking of, those sanctions or agreements will also automatically take effect in New Brunswick. “Changing the mechanism in this way provides better investor protection, enhances regulatory efficiencies, and eliminates red tape,” Hoyt adds.
The new mechanism in New Brunswick comes following legislation receiving Royal Assent in the provincial legislature.
These changes stem from a Canadian Securities Administrators’ (CSA) project to harmonize regulation. “Other jurisdictions are developing similar legislative amendments,” the FCNB says.